Metalloinvest has contracted Midrex Technologies, Inc. to supply the new HBI Plant (HBI-4) at Lebedinsky GOK (LGOK). The plant will be located in Gubkin, Russia, and will be designed to produce 2.08 million metric tons of HBI per year.
Its modern design features will ensure reduced energy consumption and environmental impact. Investment in the construction of the plant is estimated at over USD 600 million. The project will create 375 highly qualified jobs and is expected to become operational in the first half of 2025 (first product – December 2024).
HBI is a low-carbon raw material used for steel production in electric furnaces and generates up to 50% less CO2 (scope 1 + scope 2) than the traditional blast-furnace method. The contracted plant can be converted to use up to 100% hydrogen as a reducing agent, which makes possible further reduction of CO2 emissions. Midrex and Primetals Technologies will be responsible for engineering, supply of main technological equipment, as well as for supervision services.
Earlier this year Mikhailovsky HBI, which was jointly established by USM and Mikhailovsky GOK (part of Metalloinvest), contracted Midrex and Primetals for another HBI plant to be built in Russia.
Additional production volume will secure Metalloinvest’s leading position on global HBI market.